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Proposals by Sarasota Republican Sen. Joe Gruters that would authorize Florida to create and manage a cryptocurrency reserve cleared their first Senate committee stop.
The measures are contingent on each other becoming law and are designed to work in tandem. SB 1038 would set the policy framework for how the Florida Strategic Cryptocurrency Reserve would be administered, while SB 1040 creates the trust fund that would hold and manage digital assets.
Gruters told Banking and Insurance Committee members that the effort is meant as a long-term investment strategy that would allow the state to diversify its financial portfolio and participate in the evolving digital economy. The reserve would be managed by Florida’s Chief Financial Officer, currently Blaise Ingoglia.
“This bill would create a carefully limited statutory framework to hold and manage a strategic digital asset reserve, under strict prudential standards, recognizing cryptocurrency’s growing role in global finance,” Gruters said.
Under SB 1038, the CFO could only purchase cryptocurrencies that have maintained an average market capitalization of at least $500 billion over the preceding two years. The bill would also allow the CFO to contract with qualified third-party custodians, liquidity providers and public accountants, as well as create the five-member Florida Strategic Cryptocurrency Reserve Advisory Committee to advise the CFO.
Meanwhile SB 1040 establishes the Florida Strategic Cryptocurrency Reserve trust fund within the CFO’s Office. The fund could receive money through legislative appropriations, revenues dedicated by law, cryptocurrency acquired through purchases, blockchain forks or airdrops, and investment earnings.
Both bills include sunset provisions that would terminate the reserve July 1, 2030, unless reauthorized by the Legislature. Upon termination, remaining assets would be liquidated and transferred to the General Revenue Fund.
The bills now advance to the second of three committee stops, Appropriations Committee on Agriculture, Environment, and General Government. Republican Rep. John Snyder filed a House companion bill (HB 1039) on Jan. 6, but it has not yet made its first of three committee appearances.
If approved by the Legislature, the measures would take effect July 1, contingent on both bills being enacted.